The world of video gaming is bigger than you think1.
In an Australian first, investors will soon be now able to invest in an ETF of global companies that are positioned to benefit from the increasing popularity of video games and eSports.
The VanEck Vectors Video Gaming and eSports ETF (ESPO) will be the only ETF of its kind listed on ASX.
We believe the growth of video gaming and eSports is a trend, not a fad. It reflects structural changes including the increased consumer demand for online entertainment, the rise of interactive entertainment and the fragmentation of the digital media landscape.
The long term drivers that will enable further growth in video gaming and eSports are:
Younger demographic – there is a generational shift toward online gaming over more traditional social platforms; trends show that video gaming isn’t something that kids are “growing out of”.
Technological innovation – advances in AI and the digitisation of the world has pushed video gaming into the mainstream and it’s disrupting traditional entertainment channels.
Monetisation opportunities – there is significant opportunity for growth in the monetisation of eSports audiences, following the trajectory of traditional sports and also significant opportunities in emerging markets where adoption is primarily via mobile gaming.
Did you know? In 2019 eSports drew a larger global audience than American football and rugby combined. Viewership figures show eSports drew in 443 million global viewers while American football and rugby combined attracted 410 million viewers2.
The ESPO opportunity Dynamic growth opportunity Invest in the future of sports and access companies that are positioned to benefit from the increasing popularity of video games and eSports.
Pure play and targeted exposure Access high exposures to pure-play video gaming and eSport companies driving transformation in the industry.
Technology diversification A diversified portfolio across a number of countries which offers focused exposure away from Apple, Amazon, Facebook, Google and Microsoft.
1 Number of Netflix paid streaming subscribers worldwide 2011-2020, A. Watson, 17 July 2020 via statistica.com; Apple hits 1.5 billion active devices with ~80% of recent iPhones and iPads running iOS 13, M. Potuck, 28 January 2020 via 9to5mac.com; Social Media Statistics Australia – June 2020 via socialmedianews.com; The World’s 2.7 Billion Gamers Will Spend $159.3 Billion on Games in 2020; The Market Will Surpass $200 Billion by 2023, T. Wijman 8 May 2020.
2 How Esports Is Primed To Take Over Traditional Sports - For Good, G.Olya, 16 July 2020.
Important Notice: This information is prepared in good faith by VanEck Investments Limited ABN 22 146 596 116 AFSL 416755 (‘VanEck’) as the responsible entity and issuer of VanEck Vectors Video Gaming and eSports ETF (the Fund). Units in the Fund are not currently available. The Fund has been registered by ASIC and VanEck has lodged an application with ASX for units in the Fund to be admitted to trading status on ASX under the code ‘ESPO’.
This information is general in nature and not financial advice. It does not take into account any person’s individual objectives, financial situation or needs. Before making an investment decision investors should read the product disclosure statement and with the assistance of a financial adviser consider if it is appropriate for their circumstances. The PDS has been lodged with ASIC. A copy is currently available from our offices and will be available after the end of the exposure period at vaneck.com.au or by calling 1300 68 38 37.
ESPO invests in developed and emerging markets. An investment in ESPO has specific and heightened risks that are in addition to the typical risks associated with investing in the Australian equities market. These include ASX trading time differences, foreign currency, country or sector concentration, and political, regulatory and tax risks. The PDS details the key risks.
No member of the VanEck group guarantees the repayment of capital, the payment of income, performance, or any particular rate of return from ESPO.